Ch 5 (IFSA) Learning Outcomes

Question 1

Define and interpret the asset and liability categories on the balance sheet, and discuss the uses of a balance sheet.

Question 2

Describe the various formats of balance sheet presentation.

Question 3

Compare and contrast current and noncurrent assets and liabilities.

Question 4

Explain the measurement bases (e.g., historical cost and fair value) of assets and liabilities, including current assets, current liabilities, tangible assets, and intangible assets.

Question 5

List and explain the appropriate classifications and related accounting treatments for financial instruments.

Question 6

List and explain the components of shareholders’ equity.

Question 7

Interpret balance sheets, common - size balance sheets, the statement of changes in equity, and commonly used balance sheet ratios.